InContact - 28 July 2016

Included in this issue: Paper from the Financial Markets Law Committee on uncertainty about virtual currencies; BBA report shows number of internet banking logins falling as customers migrate to apps; Financial technology partnership for UK and South Korea and more...

REGULATORY

Paper from the Financial Markets Law Committee on uncertainty about virtual currencies

The Financial Markets Law Committee (FMLC) has published a paper on issues arising in the context of virtual currencies. The legal aspects of virtual currencies are considered along with issues of uncertainty regarding their development as a medium of exchange. Consideration is given to whether virtual currencies should be classified as choses, whether the nemo dat rule (the general rule that no person can give better title to an asset than he himself holds) should apply and whether virtual currency should be classed as money.

Financial Markets Law Committee, 22 July 2016

Consultation paper on handling applications under sections 56 and 57 of the Banking Reform Act

The Payment Systems Regulator (PSR) has published draft guidance as to how it will assess applications under sections 56 and 57 of the Financial Services (Banking Reform) Act 2013 (CP16/4). The guidance relates to advising businesses on what they should do if they are in dispute over provision of access to a regulated payment system or if there is a dispute over fees or charges for the use of services. The paper also considers how the PSR intends to handle applications it receives in relation to such disputes. The consultation will close on 16 September 2016.

PSR, 21 July 2016

Final report on market review into supply of indirect access to payment systems

The PSR has published the final report on its review into the supply of indirect access to payment systems, confirming interim findings which highlighted concerns about quality and choice and the ability of indirect payment service providers to switch providers. The PSR will publish an update on how it is addressing these concerns in its next access and governance report which is expected in early 2017.

PSR, 21 July 2016

FCA publishes final report of credit card market study

The FCA has published the final findings in its credit card market study and has set out a package of measures to help consumers to shop around more effectively, take better control of their spending, and to make faster repayments. The report confirmed the FCA's provisional findings that competition is working well for most consumers but noted some customers struggle to find the best deal for them, particularly higher risk consumers with problematic debt. The FCA's proposed remedies include work on opening access to data and use of application programming interfaces, taking forward work with price comparison websites, customer prompts before promotion periods end, promoting and facilitating the use of quotation searches, alerting customers at a set point of credit limit utilisation, and exploring a novel approach to repayments.

FCA, 26 July 2016

FCA feedback statement - Call for input on supporting development and adoption of RegTech

The FCA has published a feedback statement (FS16/4) and a call for input on supporting the development and adoption of RegTech. In the feedback statement, the FCA state that they intend to actively encourage and support the development and use of innovative technology whillst still remaining aware of its restrictions in its role as regulator.

FCA, 20 July 2016

UK

Research by the British Banking Association (BBA) has found that the number of internet banking logins made by customers in the UK each day fell last year, as more and more migrate to apps. Online banking logins each day fell by 2% in 2015 compared to 2014 whereas banking app logins rose by 50%. The report also shows that the number of visits made by consumers to branches is declining with 278 million visits in 2016 compared to 476 million in 2011.

BBA, 22 July 2016

Payments UK welcomes the BBA's The Way We Bank Now report

Payments UK welcomes the BBA's report showing how customers are rapidly embracing quick and convenient new technology for managing their money. Like its own report on UK Payment Markets 2016, the report of the BBA finds that UK consumers are adapting to innovation in payments in record numbers.

WORLDWIDE

Financial technology partnership for UK and South Korea

A 'fintech bridge' between Britain and South Korea has been established to make it easier for both countries to invest in the financial technology sector. The co-operation agreement will give the UK access to the Asian market and attract Korean firms to invest in the UK, confirming Britain as the global capital for fintech. The agreement follows similar deals made with Australia and Singapore earlier this month.

Reuters, 22 July 2016

Most Americans predict cashless society in their lifetime

A Gallup Survey has revealed 62% of Americans expect to see the death of cash in their lifetime. With more and more people making payments from an expanding list of electronic options, most Americans can envisage all purchases being made by credit cards, debit cards or other electronic payment in the near future. Self reported behaviour suggests young Americans are the most comfortable with being cashless.